New Delhi: The 21st GST Council meeting on Saturday in Hyderabad will discuss the teething problems of Goods and Service Tax Network (GSTN) and lowering the GST rates for luxury and sports utility vehicles along with execution of input credit system and formulating the rules for national anti-profiteering authority, Finance ministry sources said.
GST filing has been an issue and officials acknowledged there have been some teething problems in GSTN, like errors in the final submission of returns, invoice matching as well as in transition of credits. “This is an issue that will be discussed and a solution to meet this problem is expected from the meeting,” sources in GST Council said.
Arjun Ram Meghwal, Minister of State for Finance and Corporate Affairs, had said GSTN would be further improved. However, industry, especially the small and medium sector, has sought more time to file GST returns.
The hike in cess on sports utility vehicles and luxury cars to 25 per cent from 15 per cent is also scheduled to be discussed at the meeting. Last month, the Union Cabinet had already approved the proposal to impose the cess.
“Indications are that states would like to defer the implementation date of cess, so as to ensure the festive season sale is not dampened by the hike, which is also likely to be moderated to 20 per cent, if majority agree. The decision on the final rate is likely to be firmed up on Saturday,” sources in GST Council said.
Another issue that is likely to be taken up is on anti-profiteering body. The modalities of the functioning and operations are likely to be discussed.
In the GST Council meeting on Saturday, the Telangana government would seek reduction of tax slabs on certain products and services, tax concession for government projects, concession for beedi and granite industries, among others, state principal secretary (revenue) Somesh Kumar told reporters in Hyderbad.
Builders seek GST relief for government projects.
The Builders Association of India (BAI) on Friday demanded that the GST Council exempt all government projects finalised before June 30, 2017 from the GST purview and insisted on implementation of the old tax structure of value added tax (VAT) for it.
“We are facing a lot of difficulties with the existing projects. All the members of the Association who are executing the government projects are facing problems on implementation of GST and have also resolved to follow the existing procedure in tax structure that is VAT,” S N Reddy, national, vice-president of the association stated.